The first downloadable game developed by the company was Collapse, a game somewhat similar to Tetris. In 2003, company revenues topped $10 million ($5.5 million net).[1] In 2004, GameHouse was acquired by RealNetworks for $14.6 million cash and about 3.3 million RNWK shares, then estimated at $21 million.[1]

After acquisition, the GameHouse studio continued operations as a developer, while its games were distributed via RealNetworks, and the GameHouse game portal continued to operate alongside the RealArcade game service.

On November 3, 2009 RealArcade had announced they are merging with GameHouse to create a large distribution platform. Such plans include migrating the accounts of users from RealArcade, offering discounts and special offers to GamePass members and new social community opportunities. The merging is expected to complete by the end of this year.[2]

RealArcade was a gaming service run by RealNetworks that sold casual style computer games to individual users. Its purpose was to let users download demo versions of games, and optionally buy the full versions.[3]

On November 13, 2009 GameHouse and RealArcade successfully merged their websites into one portal. As a result, all customers visiting the RealArcade website are redirected to Gamehouse.com

RealArcade distributes games on a time-limited demo basis. Each game downloaded has a trial time of 60 minutes unless differently specified by each publisher. Once the trial time expires, users are required either to uninstall the game from their computer or to purchase the full version of the game. Users can also subscribe to a RealNetworks service called GamePass. For a monthly fee, it offers them ownership of 1 game of their choice per month at no additional fee and $5.00 off each game purchase.[4] As of November 2009 GameHouse, a subsidiary of RealNetworks, offers full versions of some of its games, supported by in-game advertising.[5]